Industry groups have warned that UK garden centres are facing a ‘triple whammy’ of cost and tax increases as a result of UK economic policies as they enter their busy pre-Easter trading period.
Changes to inheritance tax, hikes in national insurance contributions (NIC) and increases in the National Living Wage (NLW) all stand to impact many outlets, and while NIC and NLW increases come into effect this week, there is a year until Rachel Reeves’ proposed changes to inheritance tax on businesses are implemented.
The Horticultural Trades Association (HTA) told the Express that two thirds of its 1,300 members plan to raise prices, while many will postpone or reduce capital investments and consider hiring freezes.
Fran Barnes, CEO of the HTA, said, “These financial pressures come on top of an already challenging couple of years, during which businesses essential to the green economy have not only been battered by severe weather, rising costs, border issues, plant health fees, and weakened consumer confidence.
“Environmental horticulture is more than just an industry — it’s vital to our nation’s green future. With the proper support, we can help Britain grow greener, stronger, and more resilient. It’s time for the government to work with us, not against us, to cultivate that future.”
Under the new rules, employers’ NICs will increase from 13.8 per cent to 15 per cent, and the level at which employers start paying NICs, will be reduced to £5,000 a year from £9,100. The NLW for those aged 21 and over has increased to £12.21 per hour, while the National Minimum Wage for 18-20 year olds rose to £10.00, and the apprenticeship rate and 16-17 year old rate increased to £7.55.
Speaking after the Chancellor delivered her Spring Statement, HTA Director of Public Affairs, Jennifer Pheasey, added, “We urge the government to prioritise decisive action to alleviate the cost burdens in the sector and commit to fair policies, so that our members can continue to contribute to the UK’s environmental sustainability and overall economic wellbeing.”
